SEC seeks to freeze Binance US assets.
- It has been reported that the US Securities and Exchanges Commission (SEC) has requested a federal court in the US to freeze all of Binance US’s assets.
- This request follows the SEC’s decision to sue Binance for violating federal securities laws.
- The aim of this move is to prevent Binance US from using its available assets to avoid any potential judgments against it.
The SEC’s legal battle with Binance, the world’s largest cryptocurrency exchange, could take a significant turn following reports that the SEC is seeking to freeze Binance US’s assets.
According to sources familiar with the matter, the SEC is taking this action to prevent Binance US from dissipating available assets to avoid judgments, given the defendant’s history of violating US laws.
The sources suggest that the freezing order will only apply to Binance’s two US holding companies, which allegedly have accounts with various financial institutions, including Axos Bank, Prime Trust, and the now-defunct Silvergate Bank.
If the court order is granted, Binance US will have to return its customers’ fiat and cryptocurrencies. This move demonstrates the SEC’s determination to take more stringent measures against Binance and its founder, Changpeng Zhao (CZ).